Content analysis
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Legalese | ||
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H.S. sophomore V bad
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New words:
achieve, attract, begun, beneficial, Broadway, challenging, Columbia, conduct, consummated, customary, deal, delay, devoted, eleven, enforcement, failing, failure, forma, fourth, heavily, key, merge, merger, motivate, occurring, parallel, pendency, pending, prevent, pro, proceeding, receipt, Relief, retention, satisfaction, seek, show, solid, successfully, surviving, terminate, termination, timeframe, uncertainty, waived, waiver, wholly
Removed:
connection, grow, manage, mark, returning
Financial report summary
?Risks
- Our operations are subject to interest rate risk and changes in interest rates may negatively affect financial performance.
- Our lending is concentrated to local markets and a decline in real estate markets and the local economy could adversely impact our financial condition and results of operations.
- An improved economy but a prolonged economic recovery has adversely affected the financial services industry and, because of our geographic concentration in northern New Jersey, we could be impacted by adverse changes in local economic conditions.
- Our allowance for loan losses may be insufficient.
- If bank regulators impose limitations on the Bank’s commercial real estate lending activities, earnings could be adversely affected.
- The Corporation’s future growth may require the Corporation to raise additional capital in the future, but that capital may not be available when it is needed or may be available only at an excessive cost.
- A decrease in our ability to borrow funds could adversely affect our liquidity.
- Our inability to fulfill minimum capital requirements could limit our ability to conduct or expand our business or pay a dividend and impact our financial condition, results of operations and the market price of our Common Stock.
- External factors, many of which we cannot control, may result in liquidity concerns for us.
- Competition within the financial services industry and from non-banks could adversely affect our profitability.
- The unexpected loss of management or key personnel could impair the Corporation’s future success.
- Federal and State regulations could restrict our business and increase our costs and non-compliance would result in penalties, litigation and damage to our reputation.
- A breach of our information systems through a system failure, cyber-security breach, computer virus or disruption or interruption of service or a compliance breach by one of our vendors could negatively affect our reputation, our business and our earnings.
- We may not be able to sustain or increase the market price of our Common Stock.
- We may be unable to generate sufficient cash to service our Subordinated Notes and other debt obligations.
- If we fail to make interest and principal payments on the Subordinated Notes, the terms of the Subordinated Notes will restrict us from paying dividends to our common shareholders and this may adversely affect the market price of our Common Stock.
- Anti-takeover provisions in our Restated Certificate of Incorporation, our Amended and Restated By-Laws and New Jersey law could discourage a change of control that our shareholders may favor, which could negatively affect the market price of our Common Stock.
- Federal banking laws limit the acquisition and ownership of our Common Stock.
- Possible replacement of the LIBOR benchmark interest rate may have an impact on our business, financial condition or results of operations.
Management Discussion
- The Corporation reported net income of $1.5 million, or $0.17 basic and diluted earnings per common share, for the three months ended June 30, 2019 compared to net income of $2.3 million, or $0.27 basic and diluted earnings per share, for the three months ended June 30, 2018. For the six months ended June 30, 2019, the Corporation reported net income of $3.1 million, or $0.36 basic and diluted earnings per common share, compared to net income of $4.1 million, or $0.47 basic and diluted earnings per common share, for the six months ended June 30, 2018.
- Net interest income, on a tax equivalent basis, for the three and six months ended June 30, 2019 was $7.2 million and $14.2 million, respectively, compared to $7.0 million and $13.9 million recorded in the prior year periods. The net interest rate spread, on a tax equivalent basis, and net yield on interest-earning assets, on a tax equivalent basis, for the three months ended June 30, 2019 was 2.75% and 3.13%, respectively, compared to 2.87% and 3.16% for the three months ended June 30, 2018. For the six months ended June 30, 2019, the net interest rate spread, on a tax equivalent basis, and net yield on interest-earning assets, on a tax equivalent basis, were 2.76% and 3.12%, respectively, compared to 2.89% and 3.15% for the six months ended June 30, 2018.
- For the three and six months ended June 30, 2019, total interest income, on a tax equivalent basis, was $9.8 million and $19.2 million, respectively, compared to $8.9 million and $17.4 million for the same prior year periods. The increase reflects an increase in the average balance of interest-earning assets coupled with an increase in the overall yield on interest-earning assets. Average interest-earning assets increased $26.2 million and $27.8 million for the three and six months ended June 30, 2019 compared to the prior year period. The change in average interest-earning assets primarily reflects an increase in average loans from the comparable prior year period. Average loans increased $34.5 million and $31.9 million for the three and six months ended June 30, 2019, respectively, when compared to the prior year averages. The three and six months ended June 30, 2019 included approximately $216,000 and $332,000 of interest recoveries and prepayment premiums on loan payoffs, respectively, compared to $90,000 and $198,000 for the same prior year periods. The average rate earned on interest-earning assets was 4.27% and 4.23% for the three and six months ended June 30, 2019, respectively, compared to an average rate of 3.99% and 3.97% for the three and six months ended June 30, 2018.